Turkey imports most of its gas from Iran. And to ditch, the USA‘s “Maximum Pressure” strategy, both the countries are planning to build the joint bank for easy transactions. Iranian Ambassador to Turkey Mohammad Farazmand in his recent statement announced that both the states are seeking financial transactions incorporating their national currencies.
Oil-rich countries including Iran, Venezuela, and Russia have already considered the option of crypto-currency for trading. The validity of the option created hindrance, yet this band of rebels are willing to ditch the dollar. Iran and Turkey’s joint bank will cause an interruption in the oil market.
Declaring USA’s embargo unethical, Farazmand added that all the countries are entitled to trade with each other. And nothing illegal or out of practice has been done in this regard.
Turkey exported commodities worth of $2.4 billion last year, with Iran’s Exports to Turkey reaching $6.9 billion. Most of this trade included energy supplies. Half of Turkey’s oil, around 912,000 tons comes from Iran monthly. Amid to US sanction, turkey shut the imports last month but also criticized the USA for the move. Turkey’s oil import from Iran has declined to 209,000 tons between November 2018- April 2019. This import digit hit 0 in May.
Trump administration canceled trade waiver for Turkey and half a dozen other countries that import oil from Iran. Still, Turkey has demanded an increase in gas supply from Iran, earlier this year, Iran has responded positively to the call. Chief of Iran’s National Gas Company, Hassan Montazer confirmed that Tehran is building up an oil pipeline and a gas refinery to fulfill the need of Turkey and Iraq.
Iran is the world’s second-largest proven gas reserves and it exports 11 billion cubic meters per year to Turkey. Tayyip Erdogan has vowed to purchase more oil and gas from Iran regardless of US pressure.
Iran exports its gas to Turkey Via Tabriz-Ankara pipeline.
